China extends EU dairy probe into 2026, citing case ‘complexity'

Irish Independent

a day ago

When the investigation was first launched in the second half of last year, it was widely feared to be part of a tit-for-tat reciprocation in response to EU countries voting to impose tariffs on electric vehicle (EV) imports from China.
Yesterday, China extended its investigation into whether EU members are illegally subsidising dairy that is then sold for export.
The Ministry of Commerce said it had prolonged the investigation period to February 21, 2026, citing the case's complexity.
In June, an investigation into European pork was similarly extended, leaving exporters on tenterhooks at a time of heightened global trade tensions and a push within the EU to expand into new non-US markets.
Trade tensions between China and the EU erupted in 2023 when the European Commission launched an anti-subsidy probe into Chinese-made electric vehicles, accusing Beijing of flooding the market with state-backed exports.
In April this year, a European Commission spokesperson said the EU and China had agreed to look into setting minimum prices of Chinese-made EVs instead of tariffs imposed by the EU last year.
The two sides have yet to reach a deal.
China's move in relation to food imports means its response to barriers against its EVs hits EU member states, including Ireland, that do not produce cars that compete with Chinese-made models, but do value access to Chinese consumers.
So far, Irish farmers and producers have largely escaped the backlash. The Chinese complaint relates to a sub-sector of dairy products, including cheeses.
Most Irish cheese exports are directed to the UK and EU markets.
Irish exports are skewed more to butter and milk-derived dairy ingredients used in baby powders and other whey-based products.
However, the case highlights the growing trend away from market access across the globe, not just in the US where a tariff regime is now becoming firmly entrenched.
'Beijing is still hoping to come to terms with the EU on a long list of trade conflicts,' said Even Rogers Pay, an analyst at Beijing-based Trivium China, who specialises in agriculture.
'This investigation – along with the investigation into EU pork, which was extended in June – are significant bargaining chips in the ongoing negotiations around the EU's tariffs on Chinese new energy vehicles,' she said.